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It is estimated that investment inflow rebounded in 2017, chiefly in building construction activity, boosting construction output by almost 4% year on year. Residential construction is estimated to have experienced a higher year-on-year increase than that of non-residential construction: 18%, as opposed to 13%.

The situation should improve in 2017 as consumers are gradually resuming their spending, having cut down on C&F purchases in the previous two years. Some growth in consumer confidence is also observed in Russia. However, a return to high growth rates, observed before 2014, should not be expected as consumers will rationalise…